We may be experiencing another economic downturn, which means it is the perfect time to buy investment properties if you haven’t already. Real estate gives investors an incredible return on investment, or ROI, year after year after year.
And, even better, you can use the properties in multiple ways! You can rent out extra space on the property, buy and flip the property for extra cash, or AirBNB/rent the property until you are ready to sell.
If you really want the best deals in investment properties, you have to increase your odds by finding more deals. Who is more likely to get a cheap apartment building, an investor that looks through the MLS listings and calls it a day, or the one that uses ten resources?
Top 10 Ways to Find Lucrative Investment Properties
1. Talk to Neighbors, Friends & Relatives
Let people know you are looking for investment properties and sometimes the properties will come to you! There are a lot of owners out there who want to sell, but haven’t yet listed their property. Finding properties through word of mouth puts you first in line as a potential buyer!
2. Use the internet
Go to a search engine and enter the type of real estate you are looking for, along with the city you want to invest in. You never know what you might find.
REO, short sales, auctions, and foreclosures are abundant on the internet and just waiting for the right buyer to come and make an offer!
3. Drive around looking for “For Sale By Owner” signs
Owners often don’t want to pay to keep the ad in the paper or online every week, so you won’t see all investment properties there. Some owners are also just old-school and do things the old-fashioned way.
They’ll try a $6 sign in their yard before they try anything else. Be the first in line to contact this diamond-in-the-rough homes with no Realtor fees.
4. Find abandoned properties
Abandoned properties are a pretty clear sign that the owner doesn’t want to fix up the property. He might sell for cheap just to get the property off his hands and put some quick cash in his pocket.
These properties are easy to spot! Look for overgrown grass, weeds, boarded up windows, missing siding or shutters, etc.
5. Find old “For Rent” ads
Calling “for rent” ads by owner that are a few weeks old, may result in a win for you. Owners are often ready to sell, especially if the haven’t yet rented the units out, and are still paying the mortgage on the property.
Snatch these up when you can before the property gets listed!
6. Talk to bankers
Bankers are good friends to have. You might get a foreclosed-on investment property cheaper if you buy it before they list it with a real estate agent, or before the property goes up for auction.
7. Offer someone a finder’s fee
You can offer new Realtor’s or people with lots of business connections in the area a finder’s fee for bringing a great investment property to you! Look for local real estate investing clubs, business clubs, etc.
8. Eviction notices
If your local paper publishes eviction notices, this could be helpful. An owner who just had to go through the painstaking process of evicting their tenants may just be ready to move on from the property altogether.
9. Go Through Old For Sale by Owner (FSBO) Ads
If you call on three-month-old “For Sale By Owner” ads, and the home is still unsold, they may be ready to strike a deal. Owners often give up the effort of trying to sell when the market is down, but would still take an offer.
10. Put your own an ad in the paper
An offer such as, “Looking for investment properties to buy,” might be sufficient enough to get a few leads! Some local online papers offer free classified listings. Use them to your advantage to put feelers out and see what comes back!
If you need more help finding, buying, renovating, or managing an investment property – Contact Spectrum today! 801-655-3700